Svenska Cellulosa AB SCA Class A · OMXSTO:SCA_A
Svenska Cellulosa AB SCA Class A — SCA — FY2005 Earnings Presentation
19 slides from Svenska Cellulosa AB SCA Class A's earnings presentation, February 2006
Slide 1: SCA Year-end Report 1 January–31 December 2005
SCA Year-end Report 1 January–31 December 2005 Jan Åström President and CEO 1
Slide 2: Highlights
Highlights Positive momentum remains Price increases in main segments towards the end of the year Realized savings from efficiency programs Successful product launches within Personal Care 2
Slide 3: Group – Quarterly Development
Group – Quarterly Development* Improvements in H2 compared to H1 SEK M EBITDA (%) 35,000 18% 15.0% 16% 30,000 14.3% 14.3% 14.1% 13.7% 14% 25,000 12% 20,000 10% Sales 15,000 8% 24,740 25,141 EBITDA 23,128 22,518 23,986 6% 10,000 margin 4% 5,000 2% 0 0% Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 * Exclud
Slide 4: Financial Summary
Financial Summary Excluding items affecting comparability* Q4 2005 Change FY 2005 Change Q4/Q3 (%) Y05/Y04 (%) Net sales, SEK M 25,141 +2% 96,385 +7% Earnings after financial items, SEK M 1,574 +2% 5,798 -19% Earnings per share, SEK 5:06 -6% 18:89 -15% Dividend per share, SEK 11:00* +5% * Board prop
Slide 5: SCA Group Sales and EBIT, Q4 compared with Q3 2005
SCA Group Sales and EBIT* Q4 compared with Q3 2005 SEK M Sales 26,000 +192 +85 +93 25,141 24,740 -79 25,000 +110 24,000 23,000 22,000 Sales Q3 Personal Care Tissue Packaging Forest Other Sales Q4 Products EBIT* SEK M +64 -49 +37 +12 1,975 2,000 1,937 -26 1,800 1,600 1,400 1,200 1,000 EBIT Q3 Persona
Slide 6: SCA Group Sales and EBIT, FY 2005 compared with FY 2004
SCA Group Sales and EBIT* FY 2005 compared with FY 2004 SEK M Sales 100,000 +3,105 +858 +981 -114 96,385 89,967 +1,588 90,000 80,000 70,000 60,000 50,000 Sales 2004 Personal Tissue Packaging Forest Other Sales 2005 Care Products EBIT* SEK M 10,000 +45 8,439 -449 -829 -22 7,293 8,000 +109 6,000 4,000
Slide 7: Energy Costs
Energy Costs Significantly higher energy costs than expected in Q4 Energy cost increase of SEK 240 M in Q4 compared with Q3 Volatile gas and electricity markets in central Europe is the main explanation Updated energy cost estimates: Cost 2005: SEK ~5 bn Increase in Q1 2006 compared to Q
Slide 8: Cash Flow Analysis
Cash Flow Analysis FY 2005 compared with FY 2004 Operating cash flow SEK 7.5 (8.8) bn Lower operating cash surplus Slightly increased current capex Improved change in working capital Increased cash outflow related to structural costs Cash flow before dividend SEK +1.8 (-6.3) bn Lower t
Slide 9: Personal Care – Quarterly Development
Personal Care – Quarterly Development SEK M 19.1% EBITDA (%) Q4/Q3 comments: 6,000 20% 17.6% 17.7% 17.1% 16.8% 18% Cost savings 5,000 16% realized 14% Good volume 4,000 development 12% 3,000 10% 5,026 5,136 4,727 8% 4,568 4,462 2,000 6% 4% 1,000 2% 0 0% Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Sa
Slide 10: Personal Care
Personal Care Incontinence products Continued growth, especially within the retail segment Baby diapers Strong development of branded products Improved position and growth within retailers’ brands Feminine hygiene products Launch of new “secure fit” products in the beginning of 2006 10
Slide 11: Tissue – Quarterly Development
Tissue – Quarterly Development SEK M EBITDA (%) Q4/Q3 comments: 10,000 14% 12.4% 12.4% 12.6% 11.8% 11.6% Impact from 12% previous price 8,000 increases in North 10% America 6,000 8% Increased volumes 6% Price increases 4,000 7,917 8,109 7,336 7,144 7,531 (SEK 60 M) have 4% partly offset the hi
Slide 12: Tissue
Tissue Consumer tissue Fair volume development in Western Europe. Strong growth in Eastern Europe and Russia Price increases in Europe under implementation, further impact in Q1 2006 New tissue machine in Valls, Spain decided AFH-tissue Europe: stable demand and extensive product launche
Slide 13: Packaging – Quarterly Development
Packaging – Quarterly Development SEK M EBITDA (%) Q4/Q3 comments: 14,000 16% Increased energy 12,000 13.3% 14% costs (SEK 90 M), 11.8% 11.4% partly offset by 10.8% 12% 10,000 10.2% lower costs 10% 8,000 Rebuilding in the 8% testliner mill in 6,000 Aschaffenburg 6% 4,000 4% 7,642 8,094 8,351 8,2
Slide 14: Packaging
Packaging Corrugated board Higher prices within containerboard supports increased corrugated prices in H1 2006 European restructuring develops according to plan Strong growth in China Containerboard Price increases under implementation, EUR 40/ton realized in Q4, further increase of EUR
Slide 15: Forest Products – Quarterly Development
Forest Products – Quarterly Development SEK M EBITDA (%) Q4/Q3 comments: 5,000 25% 22.4% 21.4% 21.0% 18.4% Higher prices for 19.6% publication papers 4,000 20% High capacity 3,000 15% utilization in pulp, timber and solid-wood products 2,000 4,116 3,986 4,071 10% 3,814 3,762 1,000 5% 0 0% Q4 200
Slide 16: Forest Products
Forest Products Improved performance within publication papers Strong development of German advertising market Increased mill efficiency Fair volume development Pulp, timber and solid-wood products Stable market for softwood pulp Increased prices on pine and high-quality spruce 16
Slide 17: Cash Flow Requirement for Value Creation
Cash Flow Requirement for Value Creation SCA’s ongoing efficiency enhancement programs and current market conditions induce the need for a complementary cash flow requirement Based on SCA’s cash flow model the cash flow requirement is set at the level where the required return and accordingly va
Slide 18: Summary
Summary Positive momentum remains Challenges in 2006 Leverage on our strategic strengths Consumer and customer insights Regional presence combined with global capabilities Excellence in production and supply chain Manage higher energy costs Attain targeted savings 18
Slide 19: essentials for everyday life
essentials for everyday life™